The Impact of Tax Rebates on Export Performance: China's Textile Exports to the USA

11 Pages Posted: 25 May 2017

See all articles by Qun Bao

Qun Bao

Nankai University

Jack W Hou

California State University, Long Beach

Kunwang Li

Nankai University - School of Economics

Xiaosong Wang

Renmin University of China - School of Economics

Date Written: May 2017

Abstract

The paper evaluates the effectiveness of China increasing its tax rebate on textile exports to the USA. Using the difference‐in‐differences technique and employing The Harmonized System six‐digit data, it is found that the tax rebate policy boosted the growth of textile exports to the USA. Approximately 6 to 25 per cent of the growth can be attributed to this policy. The difference‐in‐differences technique appears useful in evaluating such policies and opens the door to studies measuring the impact of polices. The effectiveness of the export tax rebate policy should be a lesson for policymakers facing slumps in their exports in economic downturns and perhaps become part of the standard trade policy arsenal.

Suggested Citation

Bao, Qun and Hou, Jack W and Li, Kunwang and Wang, Xiaosong, The Impact of Tax Rebates on Export Performance: China's Textile Exports to the USA (May 2017). Asian‐Pacific Economic Literature, Vol. 31, Issue 1, pp. 79-89, 2017. Available at SSRN: https://ssrn.com/abstract=2972907 or http://dx.doi.org/10.1111/apel.12175

Qun Bao (Contact Author)

Nankai University ( email )

94 Weijin Road
Tianjin, 300071
China

Jack W Hou

California State University, Long Beach ( email )

1250 Bellflower Blvd
Long Beach, CA 90064
United States

Kunwang Li

Nankai University - School of Economics ( email )

Wenjin Road
Tianjin, TianJin 300071
China

Xiaosong Wang

Renmin University of China - School of Economics ( email )

No. 59, Zhongguancun Street
Beijing, Beijing 100080
China

Register to save articles to
your library

Register

Paper statistics

Downloads
0
Abstract Views
110
PlumX Metrics